diff --git a/packages/core/src/skills/skill-load.test.ts b/packages/core/src/skills/skill-load.test.ts
new file mode 100644
index 00000000000..cd549fe89ca
--- /dev/null
+++ b/packages/core/src/skills/skill-load.test.ts
@@ -0,0 +1,303 @@
+/**
+ * @license
+ * Copyright 2025 Qwen
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { vi, describe, it, expect, beforeEach, afterEach } from 'vitest';
+import {
+  parseSkillContent,
+  loadSkillsFromDir,
+  validateConfig,
+} from './skill-load.js';
+import * as fs from 'fs/promises';
+
+// Mock file system operations
+vi.mock('fs/promises');
+
+// Mock yaml parser - use vi.hoisted for proper hoisting
+const mockParseYaml = vi.hoisted(() => vi.fn());
+
+vi.mock('../utils/yaml-parser.js', () => ({
+  parse: mockParseYaml,
+  stringify: vi.fn(),
+}));
+
+describe('skill-load', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+
+    // Setup yaml parser mocks with sophisticated behavior
+    mockParseYaml.mockImplementation((yamlString: string) => {
+      if (yamlString.includes('name: context7-docs')) {
+        return {
+          name: 'context7-docs',
+          description: 'Context7 documentation skill',
+        };
+      }
+      if (yamlString.includes('allowedTools:')) {
+        return {
+          name: 'test-skill',
+          description: 'A test skill',
+          allowedTools: ['read_file', 'write_file'],
+        };
+      }
+      // Default case
+      return {
+        name: 'test-skill',
+        description: 'A test skill',
+      };
+    });
+  });
+
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
+  describe('parseSkillContent', () => {
+    const testFilePath = '/test/extension/skills/test-skill/SKILL.md';
+
+    it('should parse valid markdown content', () => {
+      const validMarkdown = `---
+name: test-skill
+description: A test skill
+---
+
+You are a helpful assistant with this skill.
+`;
+
+      const config = parseSkillContent(validMarkdown, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+      expect(config.body).toBe('You are a helpful assistant with this skill.');
+      expect(config.level).toBe('extension');
+      expect(config.filePath).toBe(testFilePath);
+    });
+
+    it('should parse markdown with CRLF line endings (Windows format)', () => {
+      const markdownCrlf = `---\r
+name: test-skill\r
+description: A test skill\r
+---\r
+\r
+You are a helpful assistant with this skill.\r
+`;
+
+      const config = parseSkillContent(markdownCrlf, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+      expect(config.body).toBe('You are a helpful assistant with this skill.');
+    });
+
+    it('should parse markdown with CR only line endings (old Mac format)', () => {
+      const markdownCr = `---\rname: test-skill\rdescription: A test skill\r---\r\rYou are a helpful assistant with this skill.\r`;
+
+      const config = parseSkillContent(markdownCr, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+      expect(config.body).toBe('You are a helpful assistant with this skill.');
+    });
+
+    it('should parse markdown with UTF-8 BOM', () => {
+      const markdownWithBom = `\uFEFF---
+name: test-skill
+description: A test skill
+---
+
+You are a helpful assistant with this skill.
+`;
+
+      const config = parseSkillContent(markdownWithBom, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+    });
+
+    it('should parse markdown when body is empty and file ends after frontmatter', () => {
+      const frontmatterOnly = `---
+name: test-skill
+description: A test skill
+---`;
+
+      const config = parseSkillContent(frontmatterOnly, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+      expect(config.body).toBe('');
+    });
+
+    it('should parse markdown with CRLF and no trailing newline after frontmatter (Issue #1666 scenario)', () => {
+      // This reproduces the exact issue: Windows-created file without trailing newline
+      const windowsContent = `---\r\nname: context7-docs\r\ndescription: Context7 documentation skill\r\n---`;
+
+      const config = parseSkillContent(windowsContent, testFilePath);
+
+      expect(config.name).toBe('context7-docs');
+      expect(config.description).toBe('Context7 documentation skill');
+      expect(config.body).toBe('');
+    });
+
+    it('should parse content with both UTF-8 BOM and CRLF line endings', () => {
+      const complexContent = `\uFEFF---\r
+name: test-skill\r
+description: A test skill\r
+---\r
+\r
+Skill body content.\r
+`;
+
+      const config = parseSkillContent(complexContent, testFilePath);
+
+      expect(config.name).toBe('test-skill');
+      expect(config.description).toBe('A test skill');
+      expect(config.body).toBe('Skill body content.');
+    });
+
+    it('should parse content with allowedTools', () => {
+      const markdownWithTools = `---
+name: test-skill
+description: A test skill
+allowedTools:
+  - read_file
+  - write_file
+---
+
+You are a helpful assistant with this skill.
+`;
+
+      const config = parseSkillContent(markdownWithTools, testFilePath);
+
+      expect(config.allowedTools).toEqual(['read_file', 'write_file']);
+    });
+
+    it('should throw error for invalid format without frontmatter', () => {
+      const invalidMarkdown = `# Just a heading
+Some content without frontmatter.
+`;
+
+      expect(() => parseSkillContent(invalidMarkdown, testFilePath)).toThrow(
+        'Invalid format: missing YAML frontmatter',
+      );
+    });
+  });
+
+  describe('loadSkillsFromDir', () => {
+    const testBaseDir = '/test/extension/skills';
+
+    it('should load skills from directory', async () => {
+      vi.mocked(fs.readdir).mockResolvedValue([
+        { name: 'skill1', isDirectory: () => true, isFile: () => false },
+        { name: 'not-a-dir.txt', isDirectory: () => false, isFile: () => true },
+      ] as unknown as Awaited<ReturnType<typeof fs.readdir>>);
+
+      vi.mocked(fs.access).mockResolvedValue(undefined);
+      vi.mocked(fs.readFile).mockResolvedValue(`---
+name: test-skill
+description: A test skill
+---
+
+Skill body.
+`);
+
+      const skills = await loadSkillsFromDir(testBaseDir);
+
+      expect(skills).toHaveLength(1);
+      expect(skills[0]?.name).toBe('test-skill');
+    });
+
+    it('should return empty array if directory does not exist', async () => {
+      vi.mocked(fs.readdir).mockRejectedValue(new Error('Directory not found'));
+
+      const skills = await loadSkillsFromDir(testBaseDir);
+
+      expect(skills).toEqual([]);
+    });
+
+    it('should skip skills with invalid YAML and continue loading others', async () => {
+      vi.mocked(fs.readdir).mockResolvedValue([
+        { name: 'valid-skill', isDirectory: () => true, isFile: () => false },
+        { name: 'invalid-skill', isDirectory: () => true, isFile: () => false },
+      ] as unknown as Awaited<ReturnType<typeof fs.readdir>>);
+
+      vi.mocked(fs.access).mockResolvedValue(undefined);
+
+      // First call returns valid content, second returns invalid
+      vi.mocked(fs.readFile)
+        .mockResolvedValueOnce(
+          `---
+name: test-skill
+description: A test skill
+---
+
+Valid skill.
+`,
+        )
+        .mockResolvedValueOnce('Invalid content without frontmatter');
+
+      const skills = await loadSkillsFromDir(testBaseDir);
+
+      expect(skills).toHaveLength(1);
+      expect(skills[0]?.name).toBe('test-skill');
+    });
+  });
+
+  describe('validateConfig', () => {
+    it('should validate valid config', () => {
+      const config = {
+        name: 'test-skill',
+        description: 'A test skill',
+        body: 'Skill body',
+        level: 'extension' as const,
+        filePath: '/path/to/skill',
+      };
+
+      const result = validateConfig(config);
+
+      expect(result.isValid).toBe(true);
+      expect(result.errors).toHaveLength(0);
+    });
+
+    it('should return error for missing name', () => {
+      const config = {
+        description: 'A test skill',
+        body: 'Skill body',
+      };
+
+      const result = validateConfig(config);
+
+      expect(result.isValid).toBe(false);
+      expect(result.errors).toContain('Missing or invalid "name" field');
+    });
+
+    it('should return error for empty name', () => {
+      const config = {
+        name: '   ',
+        description: 'A test skill',
+        body: 'Skill body',
+      };
+
+      const result = validateConfig(config);
+
+      expect(result.isValid).toBe(false);
+      expect(result.errors).toContain('"name" cannot be empty');
+    });
+
+    it('should return warning for empty body', () => {
+      const config = {
+        name: 'test-skill',
+        description: 'A test skill',
+        body: '',
+        level: 'extension' as const,
+        filePath: '/path/to/skill',
+      };
+
+      const result = validateConfig(config);
+
+      expect(result.isValid).toBe(true);
+      expect(result.warnings).toContain('Skill body is empty');
+    });
+  });
+});
diff --git a/packages/core/src/skills/skill-load.ts b/packages/core/src/skills/skill-load.ts
index ed88eb907cc..b2df7733c74 100644
--- a/packages/core/src/skills/skill-load.ts
+++ b/packages/core/src/skills/skill-load.ts
@@ -39,13 +39,32 @@ export async function loadSkillsFromDir(
   }
 }
 
+/**
+ * Normalizes skill file content for consistent parsing across platforms.
+ * - Strips UTF-8 BOM to ensure frontmatter starts at the first character.
+ * - Normalizes line endings so skills authored on Windows (CRLF) parse correctly.
+ */
+function normalizeSkillFileContent(content: string): string {
+  // Strip UTF-8 BOM to ensure frontmatter starts at the first character.
+  let normalized = content.replace(/^\uFEFF/, '');
+
+  // Normalize line endings so skills authored on Windows (CRLF) parse correctly.
+  normalized = normalized.replace(/\r\n/g, '\n').replace(/\r/g, '\n');
+
+  return normalized;
+}
+
 export function parseSkillContent(
   content: string,
   filePath: string,
 ): SkillConfig {
+  // Normalize content to handle BOM and CRLF line endings
+  const normalizedContent = normalizeSkillFileContent(content);
+
   // Split frontmatter and content
-  const frontmatterRegex = /^---\n([\s\S]*?)\n---\n([\s\S]*)$/;
-  const match = content.match(frontmatterRegex);
+  // Use (?:\n|$) to allow frontmatter ending with or without trailing newline
+  const frontmatterRegex = /^---\n([\s\S]*?)\n---(?:\n|$)([\s\S]*)$/;
+  const match = normalizedContent.match(frontmatterRegex);
 
   if (!match) {
     throw new Error('Invalid format: missing YAML frontmatter');